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Confused by Working Families Tax Credits

2 replies

happyinherts · 25/02/2011 20:45

I've been offered a part time job today which I shall probably accept. I have been out of the job market - and not looking - for 22 years and now circumstances have changed and I have amazingly been successful at gaining employment.

It's 20 hours a week BUT term time only with no pay during school hols. I've worked out that with Easter, Summer and Christmas plus three x half terms, that amounts to around 12 to 13 weeks, ie nearly 4 months unpaid work.

I also notice that to apply for working families tax credit, it's based on the year previous. This employment would begin on April 1st 2011, so in effect is that right that I wouldn't have to write down my wage on the form as it says 2009 - 2010????

And also although it's 20 hours x £7 per hour, because of the 3 months unpaid per year, it doesn't actually equate to £140 per week x 52, does it? I'd have to declare 20 x 7 x 40 or something? But then the form says 2009 - 2010 - confused?????

OP posts:
bossyboop · 26/02/2011 19:30

They go off the year before as they assume your income will remain the same and the info is easily obtained from a p60.

Do you not just have to give an estimated income? If so, put down what you expect to earn when you start your job, add a bit extra if need be because if you say you didnt earn anything then at renewal time say well actually I earned x amount then it means you have been paid too much. DH always over estimates our income slightly to allow for bonuses etc, although it means we are paid less weekly as his income is thought to be higher - once we do our renewal at the end of the year its more likely we have been underpaid once he submits his actual earnings. Its far better they owe us than the other way round.

Congrats on the new job and good luck!

Harimad · 26/02/2011 19:36

Hiya,

I was made redundant at the end of 2009, but I was told when we applied initially to put down what I earned 2008/9, and then when I got the letter saying what they'd worked out we'd get in WTC, I should THEN phone back and tell them the change in circumstances, and they would reevaluate based on the new information.

Seems a bit of a long way round, but everytime I've told them since of a change, it's sorted within a week or two max.

HTH.

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